We are in a unique situation with an economy artificially switched off. Many potential sellers and buyers have decided to take themselves out of the market until they feel safe engaging with the public. TREB statistics seem to back this up. While sales have dropped by about 65% year over year from April 2019 to April 2020, so have new listings by almost the exact same amount. Therefore, logically, sales will have dropped by 65% but only because available listings are down by 65%, in almost the same proportion.
• Sales Volume: April 2019 – 9,005 April 2020 – 2,975 Down 65%
• New Listings: April 2019 – 17,212 April 2020 – 6,174 Down 65%
The above explains why values have held well (so far) in urban Toronto “416” - demand relative to supply has not changed. I know of bidding wars as I am sure many of you do. When you hear CMHC report a prediction of a value drop of “18%” or anyone make a prediction I hope we all ask what is the basis for this rather than allowing it to drag us down. Negative news on the market will become more of a reality only when we collectively accept it as reality.
The above explains why values have held well in urban Toronto “416” - demand relative to supply has not changed. I know of bidding wars as I am sure many of you do. When you hear CMHC report a prediction of a value drop of “18%” or anyone make a prediction I hope we all ask what is the basis for this rather than allowing it to drag us down. Negative news on the market will become more of a reality only when we collectively accept it as reality.
A wildcard is whether the economy will continue to remain largely closed or whether it will be permitted to regain steam. Time will tell.